COMMERCIAL TAXES OFFICER Vs. KELVINATOR INDIA

JUDGEMENT

(1.) THIS revision has been preferred under section 15 of the Rajasthan Sales Tax Act, 1954 (hereinafter to be called as "the Act") challenging the order of the Rajasthan Sales Tax Tribunal dated March 30, 1988 and the following question of law has been framed as arising out of the order of the Tribunal : " Whether, in the facts and circumstances of the case, the purported warranty charges were not found part of the sale price ?"

(2.) BRIEF facts of the case are that for the assessment year 1983-84 (July 1, 1982 to June 30, 1983) the assessing authority found that the assessee is effecting sale of the refrigerators to its two sister concerns and in respect of the bills issued to them, four-year service warranty charges at the rate of Rs. 300 per refrigerator have been collected. The said amount was not shown as part of the sale price. It was found that only one-year service warranty was given to the customers and there is no reference of four-year warranty. The assessing authority also came to the conclusion that the said amount is not optional and has been collected from all dealers. It was further found that as a matter of fact the assessee has not produced copy of any contract nor it has been informed as to how many refrigerators have been received for repair and no service or repair is undertaken for the alleged four years. It was only in papers that the amount of Rs. 300 have been shown to bifurcate the sale price and, therefore, the said amount was included in the sale price and tax was levied thereon. It was also found that the purchasers have sold the goods to the consumers as tax-paid, in which only one amount is mentioned and there is no mention of the warranty charges of four years. The Deputy Commissioner (Appeals) has held that the amount recovered by way of four-year service contract charges or warranty charges does not form part of the sale price without discussing any of the points mentioned on the assessment order, but on the legal point.

(3.) WITH these observations, the revision is partly allowed. No order as to costs. Petition partly allowed. .